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Security Clearance Reform: the Performance Accountability Council’S Path Forward

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Security Clearance Reform: the Performance Accountability Council’S Path Forward SECURITY CLEARANCE REFORM: THE PERFORMANCE ACCOUNTABILITY COUNCIL’S PATH FORWARD HEARING BEFORE THE COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HOUSE OF REPRESENTATIVES ONE HUNDRED FOURTEENTH CONGRESS SECOND SESSION FEBRUARY 25, 2016 Serial No. 114–105 Printed for the use of the Committee on Oversight and Government Reform ( Available via the World Wide Web: http://www.fdsys.gov http://www.house.gov/reform U.S. GOVERNMENT PUBLISHING OFFICE 23–404 PDF WASHINGTON : 2017 For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Nov 24 2008 14:15 Feb 15, 2017 Jkt 000000 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 H:\23404.TXT APRIL KING-6430 with DISTILLER COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM JASON CHAFFETZ, Utah, Chairman JOHN L. MICA, Florida ELIJAH E. CUMMINGS, Maryland, Ranking MICHAEL R. TURNER, Ohio Minority Member JOHN J. DUNCAN, JR., Tennessee CAROLYN B. MALONEY, New York JIM JORDAN, Ohio ELEANOR HOLMES NORTON, District of TIM WALBERG, Michigan Columbia JUSTIN AMASH, Michigan WM. LACY CLAY, Missouri PAUL A. GOSAR, Arizona STEPHEN F. LYNCH, Massachusetts SCOTT DESJARLAIS, Tennessee JIM COOPER, Tennessee TREY GOWDY, South Carolina GERALD E. CONNOLLY, Virginia BLAKE FARENTHOLD, Texas MATT CARTWRIGHT, Pennsylvania CYNTHIA M. LUMMIS, Wyoming TAMMY DUCKWORTH, Illinois THOMAS MASSIE, Kentucky ROBIN L. KELLY, Illinois MARK MEADOWS, North Carolina BRENDA L. LAWRENCE, Michigan RON DESANTIS, Florida TED LIEU, California MICK MULVANEY, South Carolina BONNIE WATSON COLEMAN, New Jersey KEN BUCK, Colorado STACEY E. PLASKETT, Virgin Islands MARK WALKER, North Carolina MARK DESAULNIER, California ROD BLUM, Iowa BRENDAN F. BOYLE, Pennsylvania JODY B. HICE, Georgia PETER WELCH, Vermont STEVE RUSSELL, Oklahoma MICHELLE LUJAN GRISHAM, New Mexico EARL L. ‘‘BUDDY’’ CARTER, Georgia GLENN GROTHMAN, Wisconsin WILL HURD, Texas GARY J. PALMER, Alabama JENNIFER HEMINGWAY, Staff Director DAVID RAPALLO, Minority Staff Director JACK THORLIN, Counsel WILLIAM MARX, Clerk (II) VerDate Nov 24 2008 14:15 Feb 15, 2017 Jkt 000000 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 H:\23404.TXT APRIL KING-6430 with DISTILLER C O N T E N T S Page Hearing held on February 25, 2016 ....................................................................... 1 WITNESSES Ms. Beth Cobert, Acting Direcor, U.S. Office of Personnel Management Oral Statement ................................................................................................. 7 Written Statement ............................................................................................ 9 Mr. Terry Halvorsen, Chief Information Officer, U.S. Department of Defense Oral Statement ................................................................................................. 13 Written Statement ............................................................................................ 15 Mr. Tony Scott, Deputy Director for Management, U.S. Office of Management and Budget Oral Statement ................................................................................................. 18 Written Statement ............................................................................................ 20 Mr. William Evanina, Director of National Counterintelligence and Security Center, Office of the Director of National Intelligence Oral Statement ................................................................................................. 24 Written Statement ............................................................................................ 26 APPENDIX Chairman Chaffetz Opening Statement ................................................................ 60 Press Release from Senator David Vitter, submitted by Ranking Member Elijah E. Cummings ............................................................................................. 65 Responses to questions for the record from Terry Halvorsen, Chief Informa- tion Officer at the U.S. Department of Defense, submitted by Chairman Chaffetz ................................................................................................................. 66 Responses to questions for the record and relevant attachments (#1–4) from Beth Cobert, Acting Director, U.S. Office of Personnel Manaement, sub- mitted by Chairman Chaffetz ............................................................................. 73 Responses to questions for the record from William Evanina, Director of National Counterintelligence and Security Center, Office of the Director of National Intelligence, submitted by Chairman Chaffetz .............................. 89 Responses to questions for the record from Tony Scott, U.S. Chief Information Officer, U.S. Office of Management and Budget, submitted by Chairman Chaffetz ................................................................................................................. 97 (III) VerDate Nov 24 2008 14:15 Feb 15, 2017 Jkt 000000 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 H:\23404.TXT APRIL KING-6430 with DISTILLER VerDate Nov 24 2008 14:15 Feb 15, 2017 Jkt 000000 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 H:\23404.TXT APRIL KING-6430 with DISTILLER SECURITY CLEARANCE REFORM: THE PERFORMANCE ACCOUNTABILITY COUNCIL’S PATH FORWARD Thursday, February 25, 2016 HOUSE OF REPRESENTATIVES, COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM, WASHINGTON, D.C. The committee met, pursuant to call, at 9:59 a.m., in Room 2154, Rayburn House Office Building, Hon. Jason Chaffetz [chairman of the committee] presiding. Present: Representatives Chaffetz, Mica, Duncan, Jordan, Walberg, Amash, DesJarlais, Massie, Meadows, Buck, Walker, Blum, Hice, Russell, Carter, Hurd, Palmer, Cummings, Maloney, Norton, Lynch, Connolly, Duckworth, Lawrence, Lieu, Plaskett, DeSaulnier, and Welch. Chairman CHAFFETZ. Without objection, the chair is authorized to declare a recess at any time. I appreciate you all being here for this hearing, ‘‘Security Clear- ance Reform: The Performance Accountability Council’s Path For- ward.’’ At last count, the Director of National Intelligence reported 4.5 million people held security clearances, 4.5 million, and the queue for clearances continues to grow. At the end of fiscal year 2015, there were more than 388,000 new background investigations, and 117,000 periodic reinvestigations backlogged at the Office of Per- sonnel Management. That is a lot of folks with access or requesting access to our most sensitive national security information. And we have learned last year that most if not all the personal information collected during background investigations was exfiltrated in one of our country’s biggest cyber attacks. We have to be careful not to ever, ever allow that to happen again. We have to fix the process, and we have to protect the information we col- lect. And as part of my opening statement, I would actually like to yield some time to the gentleman from Oklahoma, who has been very keenly involved in this, Mr. Russell. Mr. RUSSELL. Thank you, Mr. Chairman. And I do appreciate the panel also being here today. Following the June 2015 OPM data breach, I began working with my good friend and colleague Congressman Ted Lieu on a path for- ward that would protect not just the personal and private informa- tion of those who hold security clearances but what amounts to crown jewels for any foreign intelligence service. (1) VerDate Nov 24 2008 14:15 Feb 15, 2017 Jkt 000000 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 H:\23404.TXT APRIL KING-6430 with DISTILLER 2 My concern deepened as we learned the full extent of the breach. All told, 18 million records were stolen in the breach, including data on military and intelligence personnel, placing Americans at great risk that has not abated. I also received a letter from my time in the service being a former top secret SCI clearance holder in the military stating that my data had been compromised. For me and my friend Congress- man Ted Lieu, who also received a letter, this is not some academic issue. It should also be noted that the DOD never lost security of such data when it was under their care. It was through pressure, largely from Congress, to save money, make an effort to eliminate a large backlog. Well, we eliminated the backlog by eliminating security. Whatever savings we had has surely been forfeited in that result. Today, we will examine the reform efforts advanced by the 90- day sustainability and security review by the Performance Account- ability Council, or PAC. One of the main points of emphasis I made along with Mr. Lieu was the need for the Department of Defense to own the data for our service members and Department civilians. And I am encouraged that the PAC review will result in this being accomplished. Under the reforms recommended by the PAC, the Department of Defense will be responsible for not just building the infrastructure that will house this critically important data; they will also be re- sponsible for defending it. The questions remain, however, that while the DOD has been given the responsibility, will they be given the authority while being placed under a bureau that is placed under a department? This has to be answered. I remain concerned regarding the creation of the new National Background Investigations Bureau, or NBIB. NBIB will ultimately absorb the Federal Investigative Service, which currently is tasked with conducting background investigations for the vast majority of our government.
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